The build is done. The G-Flat™ is ready. And now you have a tenant lined up and a move-in date agreed. It is an exciting moment — but before anyone gets the keys, there is one thing you need to have properly sorted: a granny flat lease agreement Victoria that protects both you and your tenant from day one.
A lease agreement for a secondary dwelling is not something to draft yourself on a Saturday morning or borrow loosely from a template you found online. Victorian tenancy law is specific, and a lease that does not comply with the Residential Tenancies Act 1997 (Vic) exposes you to legal risk regardless of how reasonable your intentions are.
Is a Granny Flat Subject to the Residential Tenancies Act?
Yes. In Victoria, a secondary dwelling rented to a tenant under a residential tenancy arrangement is fully subject to the Residential Tenancies Act 1997 (Vic). This means your rights and obligations as a landlord — and your tenant’s rights and obligations — are set by law, not just by what you and the tenant agree to put in the lease.
What Must a Granny Flat Lease Agreement in Victoria Include?
Under the Residential Tenancies Act 1997 (Vic), a residential tenancy agreement must include the following as a minimum.
The names of all parties. The full legal names of both the landlord and all tenants who will occupy the secondary dwelling.
The property address. If the secondary dwelling does not have its own street address, use a description such as “Rear dwelling at [primary dwelling address].”
The rent amount and payment frequency. The agreed weekly or fortnightly rent and the method of payment. Victoria’s rental laws set limits on how much bond can be charged — currently no more than one month’s rent for most residential tenancies where the weekly rent is under $900.
The bond amount and the Residential Tenancies Bond Authority (RTBA) lodgement requirement. All bonds in Victoria must be lodged with the RTBA within 10 business days of receipt.
The tenancy start date and, if applicable, the end date of any fixed term.
The landlord’s name and contact details.
A condition report completed and signed before the tenant takes possession.
The Consumer Affairs Victoria prescribed form. You can download the current form at consumer.vic.gov.au.
What Optional Terms Are Worth Including?
Shared areas and access. Clearly define which areas of the property are included in the tenancy and which areas remain the landlord’s private space.
Visitors and overnight guests. A reasonable clause on visitors protects your privacy as an on-site landlord without being unreasonable to the tenant.
Pets. Victoria’s rental laws now give tenants the right to request a pet. Consider your position on pets before the lease is signed.
Subletting. Including a clause that prohibits subletting without the landlord’s written consent is reasonable and enforceable.
Utilities. Specify whether utilities are included in the rent or charged separately. Getting the right insurance cover in place before the tenancy starts is equally important, so both the structure and your rental income are protected.
What Are Your Ongoing Obligations as a Landlord?
Providing a property that is in a reasonable state of repair and fit for habitation throughout the tenancy. Carrying out repairs within specific timeframes — urgent repairs within 24 hours, non-urgent repairs within 14 days of written notice. Giving proper notice before entering the property — generally 24 hours for non-emergency entry. Lodging the bond with the RTBA within 10 business days.
Understanding how a G-Flat™ affects your overall property value is also worth doing at this stage — it helps you understand the asset you are managing and the return it generates over time.
Should You Use a Property Manager?
If this is your first time as a landlord, using a licensed property manager is worth considering. Property management fees in Melbourne typically range from around 7 to 10 per cent of the weekly rent — a meaningful cost that buys significant peace of mind for first-time landlords still learning the obligations that come with the role.
Ready to Build the G-Flat™ You Will Rent Out?
If you are still in the planning stage, Innovista offers a free site assessment to help you understand what is possible on your block. You can also explore the full G-Flat™ range and read what other Melbourne homeowners say about their Innovista experience before you commit to anything.